Mar 31, 2016
Notes :
1. The above Cash Flow Statement has been prepared under the âIndirect Methodâ as set out in Accounting Standard - 3 on âCash Flow Statementsâ prescribed by the Companies (Accounting Standard) Rules, 2006.
2. Previous yearâs figures have been regrouped/rearranged wherever necessary to conform to the current yearâs presentation.
Note:
1 Company has not issued nor bought back any share during the last five years
2 None of shareholder(s) of Company is itâs holding company, ultimate holding company, subsidiaries, associates of the holding company or associates of the ultimate holding company for current year and/or previous year.
3 There are no unpaid call from any director or officers of the company for current and previous year Terms / Rights attached to equity shares:
1 Voting
The Company has only one class of equity shares having a par value of '' 10/- per share. Each holder of equity shares is entitled to one vote per share.
2 Liquidation
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
3 Dividends
The Board of Directors do not propose dividend for financial year 2015-16.
Terms & Security:
(1) Term Loan - From Bank
a) Rs, 77.64 lakhs is in the nature of machinery/equipment finance secured by hypothecation of respective machinery/equipment
b) Rs, 8070.72 lacs under CDR and governed by Master Restructuring Agreement(MRA) with Canara bank, Union Bank of India, State Bank of Patiala, The Karur Vysya Bank Ltd, & Punjab and Sind Bank. The amount repayable is over a period from FY 2017-18 to 2021-22. This loan is secured by equitable mortgage of immovable property of the Company and promoters, pari-passu charge on plant & machinery of the company (excluding land & office flat & equipments on which other lenders are having first charge) and irrevocable and unconditional personal guarantees of the Directors and pledge of shares held by promoters in the Company. There is failure in compliance of MRA conditions and company under negotiation with bank for lump sum settlement. However interest is provided at 14% to 16% p.a.
c) Balance term loan amounting to Rs,9.70 lakhs from the banks together with interest and other charges thereon, are secured by first pari-pasu charge on the fixed assets of the Company and second (collateral) pari-pasu charge on the current assets of the Company, both present and future, and by way of pledge of shares of the promoters and irrevocable and unconditional personal guarantees of the Directors.
d) In relation to CDR under MRA, during the subsistence of this MRA, if lender/monitoring committee is of opinion that the security provided by Company has become inadequate to cover balance of loan, the Company shall provide additional security to cover such deficiency. In case of delay in providing such additional security, Company shall be liable to pay additional interest @ 2% p.a. for delay period.
e) Interest rate for all term loan are subject to periodic review.
(2) Term Loan - Others
a) Rs, 1244.46 lakhs are in the nature of machinery / equipment finance secured by respective machinery/ equipments.
Note : A-4
Deferred tax liabilities (Net)
As required by Accounting Standard 22 â Accounting for Taxes on Incomeâ issued by the Institute of Chartered
Accountants Of India, which is mandatory in nature, the Company has recognized Deferred taxes which is result from the timing difference between the Book Profits and Tax Profits. As a result the deferred tax assets for the year aggregating Rs,4.32 lakhs has been recognized in the Profit and Loss Account.
Disclosure of information u/s 22 of The Micro, Small and Medium Enterprises Development Act, 2006
1. In absence of complete information from the vendors with regards to their registration (filling of Memorandum) under The Micro, Small and Medium Enterprises Development Act, 2006. (27 of 2006 ), the Company is unable to compile the full information required to be disclosed herein under section 22 of the said Act.
Disclosure as per Accounting Standards AS 15
1 Defined Contribution plan : Company contribution to Provident Fund is charged to the profit and loss account of the year when the contributions to the respective fund are due.
2 Defined Benefit Plan : Gratuity liabilities are provided for based on actuarial valuation. The Actuarial valuation is done on Projected Unit Credit method.
Actuarial gains or losses are recognized immediately in the statements of the profit and loss account as income or expense.
Mar 31, 2015
A. Corporate Information
M/s. PBA Infrastructure Limited (the company) is a public company
domiciled in India and incorporated under the provisions of the
Companies Act, 1956 read with Companies Act 2013. Its shares are listed
on two stock exchanges in India wise BSE and NSE. The Company is
engaged in execution of contracts of various infrastructure projects
including road work, bridge work and irrigation projects.
b. Basis of Preparation/Accounting of Financial Statement:
The financial statement have been prepared under the historical cost
convention and on an accrual basis of accounting and in accordance with
the generally accepted accounting principles in India (Indian GAAP)
including the Accounting Standards as prescribed under Section 133 of
the Companies Act, 2013 ('Act') read with Rule 7 of the Companies
(Accounts) Rules, 2014, the provisions of the Act (to the extent
notified). Except otherwise mentioned, the accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
c. Financial Statements: Presentation and Disclosures:
Financial Statements contain the information and disclosures mandated
by Revised Schedule VI, applicable Accounting Standards, other
applicable pronouncements and regulations.
d. Use of Estimate:
The preparation and presentation of financial statements requires
estimates and assumptions to be made, that affect the reported amount
of assets and liabilities and disclosures of contingent liabilities as
on date of the financial statements and reported amount of revenue and
expenses during the reporting period. Although these estimates are
based on the management's best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the
outcomes requiring adjustment to the carrying amounts of assets and
liabilities in future periods.
Difference between the actual results and estimates is recognized in
the period in which the actual results are known / materialized.
e. Fixed Assets and Depreciation :
i. All the fixed assets purchased are stated at cost of acquisition or
construction of assets, net of recoverable taxes, except in case of
those assets which are revalued, less accumulated depreciation or
impairment loss thereof if any. The cost includes borrowing costs,
exchange differences arising in respect of foreign currency loans or
other liabilities incurred, expenses incidental to acquisition and
installation, attributable to bringing the assets to their intended
use.
ii. Fixed assets retired from active use and held for sale are stated
at the lower of their net book value and net realizable value and are
disclosed separately in the Balance Sheet.
iii. The Company do not have Intangible Assets and Capital Work In
Progress for the period.
iv. Depreciation on fixed assets is provided on "Straight line
Method", at the rates arrived as per useful life as mentioned in Fixed
Assets Schedule, from 1st April 2014 (for assets existing on
01/04/2014) and from date of put to use for other assets after
considering Residual Value five percent, which is based on internal
assessment and independent technical evaluation carried out by
technical expert and the management believes that the useful lives as
given above best represent the period.
v. Depreciation on revalued assets is provided at the rate as above or
rate derived as per its estimated useful life, whichever is higher.
vi. Depreciation on fixed assets added/disposed off during the year is
provided on pro rata basis with reference to the date of
addition/disposal.
vii. In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over the remaining useful life.
f. Sundry Debtors / Loans and Advances:
Sundry Debtors / Loans and Advances are stated net of provision for
identified doubtful debts / advances wherever necessary. Sundry Debtors
and Loans and Advances has been taken at reconciled amount for the
parties from which the balance confirmation was received and for the
rest Debtors and balances are taken as per book balance and are subject
to adjustment and reconciliation, if any which will be done on receipts
of confirmation from such parties. In the opinion of the management on
which we have placed reliance, substantial part of debtors are
outstanding for a period exceeding six months and they are subject to
arbitration and other reconciliatory proceedings, the outcome and
quantum of which is not ascertainable and determined; subject to
reconciliations referred to above, the debtors and Loans and advances to
the extent as stated are considered good in the Balance Sheet.
g. Investments:
The Investments that are readily realizable and intended to be held for
not more than a year from the Balance Sheet date are classified as
current investments. All other investments are classified as
non-current investments.
On initial recognition, all investments are recognized at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties.
Current investments are carried at the lower of cost and quoted/fair
value, computed category wise. Long term investments are stated at
cost. Provision for diminution in the value of long-term investments is
made only if such a decline is other than temporary in the opinion of
the management.
h. Cash and cash equivalents:
Cash and cash equivalents in the cash flow statements comprise Cash at
bank and cash on hand and short term investments with an original
maturity of three months or less.
i. Derivative Instruments:
As per the ICAI announcement, derivative contracts, other than those
covered under AS - 11, are marked to market on a portfolio basis, and
the net loss after considering the offsetting effects on the underlying
hedge item, is charged to the income statement.
j. Foreign Currency Transactions:
a) Initial currency transaction:
Foreign exchanges are recorded in the reporting currency by applying to
the foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction.
b) Conversion:
Foreign currency monetary items are reported using closing rate. Non
monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the value were determined.
c) Exchange Difference:
Exchange difference arising on the settlement /conversion of monetary
items is recognized as income or expenses in the year in which they
arise.
k. Revenue Recognition:
Contract Receipt
In respect of Construction contracts and in manner specified under
Accounting Standard AS-7 on Construction Contracts, Revenue is
recognized on Stage of Completion Method based on the Bills submitted,
certified and sanctioned by the appropriate authorities and Work
completed and Uncertified Bills on the Project. The relevant cost is
recognized in accounts in the year of recognition of the revenue.
The total costs of contract are estimated by Company and are based on
technical and other estimates and experience gain.
Profit is recognized only when the outcome of the contract can be
estimated reliably. When the construction contract is expected to
result in a loss on completion of the entire contract, the entire loss
is recognized as an expense immediately in the same reporting period.
The Company's claim for extra work and escalation in rates relating to
execution of contracts are accounted as income in the year of receipt
of arbitration award or acceptance by client or evidence of acceptance
received.
Other Income
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
Dividend income recognized as and when right to receive established.
All other income is recognized on accrual basis.
l. Contract Receipts - Joint venture:
Proportionate Consolidation method of accounting and reporting is
followed in respect of Joint venture entered into by the Company. The
Income from such joint venture is recognized proportionately, in the
profit sharing ratio, and on the basis of Bills submitted, certified
and sanctioned by the appropriate authorities. The actual expenses for
such Project in Joint Venture are also accounted on the basis of the
Profit sharing ratio for the consolidation purposes
m. Valuation of work in progress:
i. The work in progress has been determined by the Management at the
estimated realizable value.
ii. The value of work in progress comprises of value of materials and
expenses incurred at site including estimated profits thereon in terms
of guidelines provided under Accounting Standards AS 7 on Construction
Contracts.
n. Borrowing costs:
Borrowing costs are accounted on accrual basis. Borrowing costs that
are directly attributable to the acquisition or construction of
qualifying assets are capitalized until the time all substantial
activities necessary to prepare qualifying assets for their intended
use are complete. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
o. Taxation:
a. Tax expenses compromise of current tax & deferred tax. Current
income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961.
Deferred Income Taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing differences of earlier year.
b. The deferred tax is accounted for using the tax rates and laws that
have been substantively enacted as on the Balance sheet date.
p. Impairment of Assets:
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine:
* The provision for impairment loss required, if any, or
* The reversal required of impairment loss recognized in previous
periods, if any,
Impairment loss is recognized when the carrying amount of asset exceeds
its recoverable amount.
Recoverable amount is determined:
* In the case of an individual asset, at higher of net selling price
and the value in use.
q. Retirement Benefits:
i. Contribution to defined contribution plans such as retirement
benefit in the form of Provident Fund Schemes whether in pursuance of
law or otherwise is accounted on accrual basis and charged to Profit
and loss account of the year.
ii. Defined benefit plans like gratuity are determined based on
actuarial valuation carried out by an independent actuary at the
balance sheet date using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit, and measures each unit separately to build up final
obligation.
iii. In relation to short term employees benefits cost of accumulated
compensated absences accounted when employees render the services that
increase their entitlement of future compensated absences; and cost of
non-accumulating compensated absences, when the absences occur.
iv. No separate provision has been made in respect of leave encashment
as the same is paid to employees as and when it is claimed.
r. Overdue Charges in Respect of Loans:
Overdue charges if any levied by Financial Institutions / Banks / NBFC
are not considered during the currency of the loan. The same is
considered as a financial expense in the year of final settlement of
loan amount.
s. Provisions:
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
i. The company has a present obligation as a result of past event
ii. A probable outflow of resources is expected to settle the
obligation; and
iii. The amount of obligation can be reliably estimated Provisions made
in terms of Accounting Standards 29 are not discounted to its present
value and are determined based on the management estimates required to
settle the obligation at the balance sheet date.
t. The cash flow statement is prepared in the manner set out in
Accounting Standards 3. Cash and Cash equivalents presented in the cash
flow statement consist of cash on hand and balance with bank including
bank deposits having maturity period within three months.
Mar 31, 2012
A. Basis of Preparation/Accounting of Financial Statement:
The financial statement have been prepared under the historical cost
convention and on an accrual basis of accounting and in accordance with
the generally accepted accounting principles in India (Indian GAAP) and
comply in all material aspect with the Notified Accounting Standards
stated in Companies Accounting Standards Rule, 2006 (as amended) and
the relevant provision of the Companies Act,1956. Except otherwise
mentioned, the accounting policies have been consistently applied by
the Company and are consistent with those used in the previous year.
b. Financial Statements: Presentation and Disclosures: During the year
ended March 31, 2012, the Revised Schedule VI notified under the
Companies Act, 1956 has become applicable to the Company, for
preparation and presentation of its financial statements. The adoption
of Revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements.
Financial Statements contain the information and disclosures mandated
by Revised Schedule VI, applicable Accounting Standards, other
applicable pronouncements and regulations.
c. Use of Estimate:
The preparation and presentation of financial statements requires
estimates and assumptions to be made, that affect the reported amount
of assets and liabilities and disclosures of contingent liabilities as
on date of the financial statements and reported amount of revenue and
expenses during the reporting period. Although these estimates are
based on the management's best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result
in the outcomes requiring adjustment to the carrying amounts of assets
and liabilities in future periods. Difference between the actual
results and estimates is recognised in the period in which the actual
results are known / materialized.
d. Fixed Assets and Depreciation :
i. All the fixed assets purchased are stated at cost of acquisition or
construction of assets, net of recoverable taxes, except in case of
those assets which are revalued, less accumulated depreciation or
impairment loss thereof if any. The cost includes borrowing costs,
exchange differences arising in respect of foreign currency loans or
other liabilities incurred, expenses incidental to acquisition and
installation, attributable to bringing the assets to their intended
use.
ii. Fixed assets retired from active use and held for sale are stated
at the lower of their net book value and net realisable value and are
disclosed separately in the Balance Sheet.
iii. The Company do not have Intangible Assets and Capital Work In
Progress for the period.
iv. Depreciation on fixed assets is provided on "Straight line
Method", at the rates and the manner as prescribed by Schedule XIV to
the Companies Act, 1956.
v. Depreciation on revalued assets is provided at the rate specified
u/s-205(2) (b) of the Companies Act, 1956 or rate derived as per its
estimated useful life, whichever is higher.
vi. Depreciation on fixed assets added/disposed off during the year is
provided on prorata basis with reference to the date of
addition/disposal.
vii. In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over the remaining useful life.
e. Sundry Debtors / Loans and Advances:
Sundry Debtors / Loans and Advances are stated net of provision for
identified doubtful debts/advances. Sundry Debtors and Loans and
Advances has been taken at the reconciled amount for the parties from
which the balance confirmation was received and for the rest balances
are taken as per book balance.
As and when the confirmations with respect to the balances will be
received the reconciliations will be done and the adjustments, if any,
on this account will be made. In the opinion of the management, subject
to reconciliations referred above, the debts and Loans and Advances to
the extent as stated are considered good in the Balance Sheet are fully
recoverable.
f. Investments:
The Investments that are readily realizable and intended to be held for
not more than a year from the Balance Sheet date are classified as
current investments. All other investments are classified as
non-current investments.
On initial recognition, all investments are recognised at cost. The
cost comprises purchase price and directly attributable acquisition
charges such as brokerage, fees and duties.
Current investments are carried at the lower of cost and quoted/fair
value, computed category wise. Long term investments are stated at
cost. Provision for diminution in the value of long-term investments is
made only if such a decline is other than temporary in the opinion of
the management.
g. Cash and cash equivalents
Cash and cash equivalents in the cash flow statements comprise Cash at
bank and cash in hand and short term investments with an original
maturity of three months or less
h. Derivative Instruments:
As per the ICAI announcement, derivative contracts, other than those
covered under AS - 11, are marked to market on a portfolio basis, and
the net loss after considering the offsetting effects on the underlying
hedge item, is charged to the income statement.
i. Foreign Currency Transactions:
a) Initial currency transaction
Foreign exchanges are recorded in the reporting currency by applying to
the foreign currency amount the exchange rate between the reporting
currency and the foreign currency at the date of the transaction.
b) Conversion:
Foreign currency monetary items are reported using closing rate. Non
monetary items which are carried in terms of historical cost
denominated in a foreign currency are reported using the exchange rate
at the date of the transaction; and non monetary items which are
carried at fair value or other similar valuation denominated in a
foreign currency are reported using the exchange rates that existed
when the value were determined.
c) Exchange Difference:
Exchange difference arising on the settlement /conversion of monetary
items is recognized as income or expenses in the year in which they
arise.
Revenue Recognition:
Contract Receipt
In respect of Construction contracts and in manner specified under
Accounting Standard AS-7 on Construction Contracts, Revenue is
recognized on Percentage completion method based on the Bills
submitted, certified and sanctioned by the appropriate authorities and
Work completed and Uncertified Bills on the Project. The relevant cost
is recognized in accounts in the year of recognition of the revenue.
The total costs of contract are estimated by Company and are based on
technical and other estimates, this being a Technical subject, the
auditors have relied on such assumptions.
Profit is recognised only when the outcome of the contract can be
estimated reliably. When the construction contract is expected to
result in a loss on completion of the entire contract, the entire loss
is recognized as an expense immediately in the same reporting period.
The Company's claim for extra work and escalation in rates relating to
execution of contracts are accounted as income in the year of receipt
of arbitration award or acceptance by client or evidence of acceptance
received.
Other Income
Profit on sale of investment is recognized on transfer of title from
the company and is determined as the difference between the sale price
and carrying value of the Investment.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable. Machinery Hire
Charges is recognized on accrual basis.
k. Contract Receipts - Joint venture:
Proportionate Consolidation method of accounting and reporting is
followed in respect of Joint venture entered into by the Company. The
Income from such joint venture is recognized proportionately on the
basis of Bills submitted, certified and sanctioned by the appropriate
authorities. The actual expenses for such Project in Joint Venture are
accounted on the basis of the Profit sharing ratio.
l. Valuation of work in progress:
i. The work in progress has been determined by the Management at the
estimated realizable value.
ii. The value of work in progress comprises of value of materials and
expenses incurred at site including estimated profits thereon in terms
of guidelines provided under Accounting Standards AS 7 on Construction
Contracts.
m. Borrowing costs:
Borrowing costs are accounted on accrual basis. Borrowing costs that
are directly attributable to the acquisition or construction of
qualifying assets are capitalized until the time all substantial
activities necessary to prepare qualifying assets for their intended
use are complete. A qualifying asset is one that necessarily takes
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to revenue.
n. Taxation:
a. Tax expenses compromise of current tax & deferred tax. Current
income tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Indian Income Tax Act, 1961.
Deferred Income Taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing differences of earlier year.
b. The deferred tax is accounted for using the tax rates and laws that
have been substantively enacted as on the Balance sheet date.
o. Impairment of Assets :
As at each balance sheet date, the carrying amount of assets is tested
for impairment so as to determine:
æ The provision for impairment loss required, if any, or
æ The reversal required of impairment loss recognised in previous
periods, if any, Impairment loss is recognised when the carrying amount
of asset exceeds its recoverable amount. Recoverable amount is
determined:
In the case of an individual asset, at higher of net selling price and
the value in use.
p. Retirement Benefits :
I. Contribution to defined contribution plans such as retirement
benefit in the form of Provident Fund Schemes whether in pursuance of
law or otherwise is accounted on accrual basis and charged to Profit
and loss account of the year.
ii. Defined benefit plans like gratuity are determined based on
actuarial valuation carried out by an independent actuary at the
balance sheet date using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit, and measures each unit separately to build up final
obligation.
iii. In relation to short term employees benefits cost of accumulated
compensated absences accounted when employees render the services that
increase their entitlement of future compensated absences; and cost of
non- accumulating compensated absences, when the absences occur.
iv. No separate provision has been made in respect of leave encashment
as the same is paid to employees as and when it is claimed.
q. Provisions:
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
i. The company has a present obligation as a result of past event
ii. A probable outflow of resources is expected to settle the
obligation; and
iii. The amount of obligation can be reliably estimated Provisions made
in terms of accounting Standard 29 are not discounted to its present
value and are determined based on the management estimates required to
settle the obligation at the balance sheet date.
r. The cash flow statement is prepared in the manner set out in
Accounting Standards 3. Cash and Cash equivalents presented in the cash
flow statement consists of cash on hand and balances with bank
including bank deposits having maturity period within three months.
Mar 31, 2010
A. Basis of accounting: The financial statement have been prepared to
comply in all material aspects with the Notified Accounting Standards
stated in Companies Accounting Standards Rule,2006 (as amended) and the
relevant provision of the Companies Act,1956. Except otherwise
mentioned, the accounting policies have been consistently applied by
the Company and are consistent with those used in the previous year.
b. FixedAssets and Depreciation :
i. All the fixed assets purchased are stated at cost of acquisition
except in case of those assets which are revalued.
ii. Depreciation on fixed assets is provided on "Straight line Method",
at the rates prescribed by Schedule XIV to the CompaniesAct, 1956.
iii. Depreciation on revalued assets is provided at the rate specified
u/s-205(2) (b) of the Companies Act, 1956 or estimated useful life,
whichever is higher.
iv. Depreciation on fixed assets added/disposed off during the year is
provided on prorata basis with reference to the date of
addition/disposal.
v. In case of impairment, if any, depreciation is provided on the
revised carrying amount of the assets over the remaining useful life.
c. Sundry Debtors / Loans and Advances: Sundry Debtors / Loans and
Advances are stated net of provision for identified doubtful
debts/advances. Sundry Debtors and Loans and Advances has been taken at
the reconciled amount for the parties from which the balance
confirmation was received and for the rest balances are taken as per
book balance. As and when the confirmations with respect to the
balances will be received the reconciliations will be done and the
adjustments, if any, on this account will be made. In the opinion of
the management, subject to reconciliations referred above, the debts
and Loans and advances to the extent as stated are considered good
inthe Balance Sheet are fully recoverable.
d. Investments: The Investments that are readily realizable and
intended to be held for not more than a year are classified as current
investments.All other investments are classified as other investments
e. Cash and cash equivalents: Cash and cash equivalents in the cash
flow statements comprise Cash at bank and cash in hand and short term
investments with an original maturity of three months or less
f. Derivative Instruments: As per the ICAI announcement, derivative
contracts, other than those covered under AS Ã 11, are marked to market
on a portfolio basis, and the net loss after considering the offsetting
effects on the underlying hedge item, is charged to the income
statement.
g. Foreign CurrencyTransactions:
a) Initial currency transaction: Foreign exchanges are recorded in the
reporting currency by applying to the foreign currency amount the
exchange rate between the reporting currency and the foreign currency
at the dateof the transaction.
b) Conversion: Foreign currency monetary items are reported using
closing rate. Non monetary items which are carried in terms of
historical cost denominated in a foreign currency are reported using
the exchange rate at the date of the transaction; and non monetary
items which are carried at fair value or other similar valuation
denominated in a foreign currency are reported using the exchange rates
that existed when the value were determined.
c) Exchange Difference: Exchange difference arising on the settlement
/conversion of monetary items is recognized as income or expensesinthe
year in which they arise.
h. Revenue Recognition:
i) In respect of Construction contracts and in manner specified under
Accounting Standards AS-7 on Construction Contracts, Revenue is
recognized on Percentage completion method based on the Bills
submitted, certified and sanctioned by the appropriate authorities. The
relevant cost is recognized in accounts in the year of recognition of
the revenue.
ii) The total costs of contract are estimated by the Company and are
based on technical and other estimates. The auditors have relied on
such assumptions.
i. Contract Receipts - Joint venture: Proportionate Consolidation
method of accounting and reporting is followed in respect of Joint
venture entered into by the Company. The Income from such joint venture
is recognized proportionately on the basis of Bills submitted,
certified and sanctioned by the appropriate authorities. The actual
expenses for such Project in Joint Venture are accounted on the basis
of the Profit sharing ratio.
j. Valuation of work in progress:
i) The work in progress has been determined by the Management at the
estimated realizable value.
ii) The value of work in progress comprises of value of material and
expenses incurred at site including estimated profits thereon in terms
of guidelines provided under Accounting Standards AS 7 on Construction
Contracts.
k. Borrowing costs: Borrowing costs are accounted on accrual basis.
Borrowing costs that are directly attributable to the acquisition or
construction of qualifying assets are capitalized until the time all
substantial activities necessary to prepare qualifying assets for their
intended use are complete. A qualifying asset is one that necessarily
takes substantial period of time to get ready for its intended use. All
other borrowing costs are charged to revenue.
l. Taxation: a. Tax expenses compromise of current & deferred tax.
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Indian Income Tax Act, 1961.
Deferred Income Taxes reflect the impact of current year timing
difference between taxable income and accounting income for the year
and reversal of timing differences of earlier year. b. The deferred
tax is accounted for using the tax rates and laws that have been
substantively enacted as of the Balance sheet date.
m. Impairment of Assets : As at each balance sheet date, the carrying
amount of assets is tested for impairment so as to determine:
- The provision for impairment loss required, if any, or
- The reversal required of impairment loss recognised in previous
periods, if any, Impairment loss is recognised when the carrying amount
of asset exceeds its recoverable amount.
Recoverable amount is determined:
- In the case of an individual asset, at higher of net selling price
and the value in use.
n. Retirement Benefits:
i) The retirement benefit in the form of Provident Fund and Pension
Schemes whether in pursuance of any law or otherwise is accounted on
accrual basis and charged to profit and loss account of the year.
ii) Gratuity in respect of past and present services of employees is
being accounted for on accrual basis based on actuarial valuation.
iii) No separate provision has been made in respect of leave encashment
as the same is paid to the employee as and when it is claimed.
o. Provisions: Provisions are recognized for liabilities that can be
measured only by using a substantial degree of estimation, if
i. The company has a present obligation as a result of past event
ii. A probable outflow of resources is expected to settle the
obligation; and
iii. The amount of obligation can be reliably estimated Provisions
made in terms of Accounting Standard 29 are not discounted to its
present value and are determined based on the management estimates
required to settle the obligation at the balance sheet date.
p. The cash flow statement is prepared in the manner set out in
Accounting Standards 3. Cash and cash equivalents presented in the
cash flow statement consists of cash on hand and balances with banks.
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